News – Destination Taxes
WTTC
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WTTC Warns Proposed UK Visitor Levies Could Hinder Sector Growth and Jobs – Image Credit Unsplash+
The World Travel & Tourism Council (WTTC) has issued a warning about proposed local visitor levies in England, noting that such measures could negatively affect sector growth, employment, and the UK’s global competitiveness.
The WTTC‘s warning follows the UK government’s consultation on proposals to allow Mayoral Strategic Authorities to introduce overnight visitor levies. WTTC analysis indicates that the UK’s travel and tourism sector is underperforming relative to global peers, and new visitor charges could exacerbate existing challenges. These charges would particularly affect small and medium-sized enterprises, including owners of small hotels, restaurants, and local shops.
WTTC data show global travel and tourism GDP is forecast to grow by 6.7% in 2025, while the UK is expected to grow by 4.3%, placing UK growth 36% below the global average. The sector supports about 4.5 million jobs in the UK, or roughly one in eight jobs nationwide.
Over the last four years, one in three jobs globally has been created by the travel and tourism sector, but new jobs in the UK are at risk due to policies such as visitor levies, as tourists may choose destinations without such charges.
The World Economic Forum’s 2024 Travel & Tourism Development Index ranks the UK 113th out of 119 countries for price competitiveness, reflecting the cumulative impact of high taxes, operating costs, and administrative burdens on visitors.
Research shows that travelers are increasingly price-sensitive, especially in weaker economic conditions. Cost and value for money are primary considerations for travelers when selecting destinations, and higher prices tend to reduce demand, even among sustainability-focused consumers. Industry estimates suggest billions in potential visitor spending are being redirected away from the UK to markets perceived as more affordable and predictable.
WTTC expressed concern that devolving levy powers to individual cities or regions could create a fragmented and uncertain policy environment for visitors and businesses. Analysis of destination management policies found that while local visitor taxes may increase revenue, they often do not address underlying infrastructure or capacity challenges and may increase complexity, discourage investment, and undermine long-term competitiveness if not paired with a national strategy and reinvestment framework.
WTTC advises against the introduction of new visitor levies in England and urges policymakers to focus on improving the UK’s overall competitiveness. Recommendations include reducing the cost burden on visitors, maintaining a stable and consistent national policy environment, and ensuring effective reinvestment of tourism-generated revenues to support destinations, infrastructure, and local communities.
WTTC warns that without such measures, new levies could further slow growth, reduce visitor numbers, and undermine the travel and tourism sector’s contribution to the UK economy during a period of global recovery.
